disclose the period in which the movements occurred. Producers has affiliated members at the first four points named. All the points are served exclusively by Santa Fe except Anthony which is served by Santa Fe and Missouri Pacific and Alva which is served by Santa Fe and Rock Island. The witness however had no knowledge as to the volume of wheat originated at any of the points named for the calendar years 1975 and 1976, but the aforementioned stations are all located in areas where significant quantities of wheat are produced.

From company records produced on redirect examination, respondent developed that in 1974, 4,261 cars of wheat were unloaded at Corpus Christi of which 252 or about 6 percent originated in Oklahoma. In 1975, 7,424 cars were unloaded of which 131 or 1.7 percent originated in Oklahoma. In neither of the above periods nor during the first 8 months of 1976 do protestants records reflect shipments with an origin in the supplement 76 territory. Protestant explains, however, that a shipment accorded transit in Texas or at Enid could have actually originated at one of the affected origins in Oklahoma but the company's records would show the transit station as the origin rather than the actual country origin. In 1973, wheat was purchased from Gage and Woodward both of which received supplement 76 reductions. The aforesaid 1974 and 1975 carloads represent shipments originated by about five railroads in addition to Santa Fe.

Protestant points out that under the supplement 76 adjustment, wheat from the considered origin points could be transited at Houston and then moved to Beaumont which is 309 miles from Houston over Santa Fe tracks. Houston to Beaumont via Southern Pacific is 84 miles. Up to August 28, 1976 wheat held in transit at Houston could be sent to Corpus Christi for export. The distance is 234 miles over Missouri Pacific and 238 miles via Southern Pacific. Thus at present a shipment transited at Houston could move to Beaumont for export at no additional cost even though the distance is about 73 miles greater than to Corpus Christi. The witness does not know whether respondent moves Beaumont traffic via Houston. Producers have not exported at Beaumont traffic transited at Houston, but it may have done so at Corpus Christi following the explosion at the Goodpasture elevator. Distances were considered in the 1954 and 1961 Nueces County Navigation cases, supra, and there have been no significant changes. Protestant concedes that Santa Fe mileages from the considered origins are less to either Houston or Beaumont than Santa Fe and connecting carrier mileages to Corpus Christi.

From 10 Santa Fe origins in the affected area the average distance to Corpus Christi is 818 miles via Bay City, Tex., and Missouri Pacific beyond and 838 miles via Fort Worth, Tex., and Missouri Pacific beyond and the average of the reduced rates, had they applied to Corpus Christi, is 67 cents. The average rate via the Bay City route would produce revenue of $1,326 per car and $1.62 per car mile assuming an average load of 198,000 pounds per car. From stations on the Santa Fe in west Texas rates on wheat are at the same level to all Texas ports including Corpus Christi. From 10 randomly selected points in west Texas the average distance to Corpus Christi via Santa Fe to Bay City and Missouri Pacific beyond is 823 miles and the average rate 67.5 cents. This rate

at the average distance produces revenue of $1,336 per car and $1.62 per car mile again assuming an average lading of 198,000 pounds. No endeavor was made to determine whether the points studied were representative in terms of mileage from either of the areas studied.

For the 4 years beginning May 1, 1972, through the year beginning May 1, 1975, truck unloadings of wheat at the Corpus Christi terminal were 558,994, 563,846, 1,841,584, and 1,994,791 bushels, respectively. Over the 4 years this is an increased of 357 percent. This wheat originates at points in Texas, Oklahoma, Kansas, and Colorado but the witness could not verify that there were any shipments from the considered origin area. Since 1973 the rate paid for motor carriage to Corpus Christi has not exceeded the prevailing rail rate to the same port, even though the distances are greater than to the north Texas ports. Generally truck rates follow the trend sent by rail rates though they may be substantially lower. Reference is made to two truck movements of wheat in July 1976 from the west Texas point of Canadian to Corpus Christi. The rates charged were 63 and 65 cents. At the time of movement the rail rate was 74 cents and applied to all Texas gulf ports. In September 1975, a truckload of wheat was moved from Fort Worth to Corpus Christi at a rate of 30 cents. The short highway miles from Canadian to Corpus Christi is 92 miles greater than to Houston, 59 miles greater than to Beaumont, and 43 miles greater than to Galveston. From Fort Worth, Corpus Christi is 74 miles more distant than Galveston, 87 miles more distant than Beaumont, and 123 miles more distant than Houston. The above comparisons are offered to show that the truck rates, despite the greater distance to Corpus Christi were generally less than the prevailing rail rate. There have been no truck shipments from the supplement 76 territory to Corpus Christi since April 1976.

Protestant is in daily competition with other exporters. The supplement 76 reductions range from 1 to 6 cents and the average is 2.5 cents per 100 pounds or 1.5 cents per bushel. Unless Corpus Christi is kept on a parity with Houston and other Texas ports Producers will be unable to compete with those who export through Beaumont, Galveston, Houston, Texas City, and Port Arthur. The refusal of Santa Fe and Missouri Pacific to agree upon a suitable formula for dividing the revenue derived from the reduced rates places protestant in a difficult position. It cannot force the carriers to agree to a split of revenue, but unless the rates are equal it cannot compete with rivals who export over the advantaged ports. According to protestant the availability of Corpus Christi on a equal footing with the north Texas ports affords growers and elevator operators an additional market in which to sell. Protestant concedes that country elevators are sensitive to transportation costs and that if the gulf market bid remains the same the supplement 76 reductions should result in the country elevator receiving more for its wheat.

Nueces County Navigation District No. 1 is a public body charged with operating the Port of Corpus Christi. Among the facilitics owned or operated by the Port are a public grain elevator capable of holding about 5.6 million bushels, two truck unloading dumps, a boxcar pit and a covered hopper pit each capable of unloading 25,000 bushels an hour.

The vessel berth alongside the elevator is 1,100 feet long and is ideally suited for vessels in the 25,000 to 30,000 ton range. They can be loaded to a draft of 35 or 36 feet. About 100,000 bushels can be loaded an hour. Consideration is being given to the construction of a new berth capable of accommodating vessels of up to 100,000 tons. If it is decided to go ahead with the project the cost will exceed $8 million. The channel serving the port has a depth of 40 feet and the Corps of Engineers has spent about $5 million yearly for the past several years in improving the channel. Plans are underway to increase the depth to 45 feet. When completed the port will have the deepest channel on the Texas gulf thus permitting larger vessels, with their attendant lower ocean rates to call. Between 800 and 900 vessels serve the port yearly and shipments move throughout the world.

The port observed its 50th birthday in September 1976 and has enjoyed substantial growth. Petroleum accounts for about 70 percent of business, agricultural products consisting mainly of grain 15 to 20 percent, and the balance general cargo and dry bulk commodities. The principal grains are sorghum or milo and wheat. The elevator was constructed in 1954 with a capacity of 2 million bushels. It was expanded in 1959 and again in 1961 to where it is now capable of holding 5.6 million bushels. The expansions occurred during a period when Corpus Christi enjoyed equality with the north Texas ports from certain origins.

Protestant contrasts the growth of the Corpus Christi elevators including Producers', with that at the north Texas ports. Thus it shows that the Continental Grain elevator at Beaumont constructed in 1962 with an initial capacity of 3.4 million bushels, the Bunge elevator at Galveston constructed in 1929 with a capacity of 7.3 million bushels, the Cook Industries elevator also at Galveston constructed in 1976 with a capacity of 4 million bushels, the Cargill elevator at Houston constructed in 1967 with a capacity of 4.8 million bushels, the Houston Public Elevator also at Houston constructed in 1926 with a capacity of 6 million bushels, and Union Equity also at Houston constructed in 1966 with a capacity of 6.5 million bushels, unlike the elevators at Corpus Christi have never been enlarged. Using 1954 as a base year Corpus Christi had a storage capacity of 2 million bushels. Houston as of the same year could accommodate 6 million bushels. Today Corpus Christi has a capacity of 11.9 million bushels or an increase of 9.9 million, while Houston has 17.3 million or an increase of 11.3 million bushels. The Goodpasture elevator at Houston constructed in 1962 with a capacity of 8.5 million bushels was destroyed in mid-1976. It will be rebuilt but the record does not disclose its projected capacity.

The Port's public elevator is used only by those who intend to export. About 26,000 trucks and 20,000 cars unload grain yearly. Most truck shipments originate in the south Texas area and trucks handle only a minute portion of the inbound movement of wheat, but on occasion they originate shipments at points in Oklahoma, Colorado and New Mexico. For the 6 years 1970 through 1975 and the first 9 months of 1976 shipments of wheat exported through the Port of Corpus Christi amounted to 8.1, 2.8, 16.3, 65.5,

33.8, 45.2, and 30.9 million bushels, respectively. For the same period the percentage of wheat to total grains was 12, 3, 21, 39, 26, 29, and 32 percent, respectively. The exportation of wheat increased about four fold in 1973 over 1972, the increase being attributed to the Russian wheat sale. Of the 45,213,747 bushels exported in 1975, 20,198,545 bushels moved through the public elevator and the balance or 25,015,202 bushels through Producers' facility.

During calendar 1975 the public elevator received 794 carloads of wheat aggregating 158,738,321 pounds or 2,645,638 bushels from 28 Oklahoma origins. The average weight per car was 199,922 pounds and the witness assumes that with a single exception all the shipments moved in covered hoppers. From the nine origins served exclusively by Santa Fe, there were 83 cars with an aggregate lading of 16,651,370 pounds. Out of the nine origins only two-Shattuck and Woodward-were accorded reduced rates. There were 10 cars from Shattuck and 6 from Woodward for a total volume of 3,214,520 pounds or 53,575 bushels. In relation to the 20,198,545 bushels exported the same year by protestant, the volume from the considered origins comprises about 0.25 percent.

Of the 28 Oklahoma origins from which wheat was received, three, Alva, Shawnee, and Enid, are served by one or two (Enid) carriers in addition to Santa Fe. Enid was the origin for 531 cars with an aggregate lading weight of 106,280,051 pounds and was by far the heaviest shipping point. Two cars each originated at Alva and Shawnee. The records maintained by protestant do not disclose how the wheat arrived at Enid, from where it arrived, or which of the three rail carriers serving the station, Santa Fe, Rock Island, or Frisco participated in the outbound movement.

The public elevator is used by several exporters including Producers and Dreyfus. The latter is the largest user accounting for about 35 percent of the grain moving through the elevator during the first 9 months of 1976. Protestant had no knowledge as to the extent of Dreyfus' participation in 1975. Any Dreyfus shipments originated in Oklahoma during 1975 would be included in the aforesaid traffic studies.

COST PRESENTATION

Santa Fe developed variable costs per 100 pounds for movement of wheat in covered hopper cars from Blackwell, Buffalo, Freedom, and Waynoka, Okla., and Kiowa, Kans., to Beaumont, Galveston, Houston, Texas City, and Corpus Christi. Costs to Corpus Christi from each origin are developed separately over each of four routes. In making the study a transit stop at Enid was taken into account for each movement analyzed, and it was assumed that each car had a lading weight of 150,000 pounds which is the minimum weight applicable in connection with the rates under investigation when certain types of cars are furnished. Costs were based on rail operations in 1975 with an adjustment to reflect wage and price levels as of April 1, 1976. The study shows that the supplement 76 rates prior to the Ex Parte No. 330 increases on movements to

the four north Texas ports exceeded variable costs by from 4 to 30 percent. In comparison to the situation at Corpus Christi, the rates to the north Texas ports returned revenues from 3.5 to 16 percent greater than did the same rates on movements to Corpus Christi.

Protestants Dreyfus and the Port of Corpus Christi believe that respondent's study substantially overstates costs associated with the movements studied. They restate respondent's study in three respects. The first adjustment is to compute costs on a net load of 200,000 pounds rather than the 150,000 pounds used by respondent. During the 12-month period ended May 31, 1976 the average load received by protestant Dreyfus at the Texas ports from the considered Oklahoma area was 199,540 pounds per car. Second, in developing line-haul costs for the portion of the movements by Missouri Pacific and Southern Pacific from interchange points to Corpus Christi respondent used average weight train costs. Protestant Dreyfus has been informed by Missouri Pacific that grain cars from the interchange with Santa Fe at Fort Worth or Bay City, Tex., move to Corpus Christi in through train schedules and costs based on this premise are appropriate. Third, in working up costs for the joint-line Santa Fe-Missouri Pacific route to Corpus Christi with interchange at Fort Worth, respondent used a Missouri Pacific distance of 487 miles. Protestant Dreyfus has determined that the actual distance is 465.3 miles and it used this figure in the restatement.

Protestants restatement shows that had the proposed rates at the Ex Parte No. 313 level been applied to Corpus Christi they would have exceeded the variable cost by amounts ranging from 19 percent to 42 percent assuming a transit at Enid, and from 53 to 67 percent on nontransited shipments. At the Ex Parte No. 330 level the excess over variable cost ranges from 25 to 49 percent assuming transit at Enid, and from 60 to 76 percent on nontransited shipments. They submit that application of the proposed rates to Corpus Christi would generate revenues which substantially exceed the carriers' variable cost.

In addition protestants question other aspects of the study chiefly on the grounds that unjustified assumptions were used without real analysis of their conformity to the way cars of wheat are actually handled. Among the criticisms are the way the cost for transit at Enid was calculated with respect to cars turned over by Santa Fe to Rock Island or Frisco for movement to an industry, car days at origin stations may be inflated, adjustment of switching expenses dependent on population of the station, the origin points studied account for only a tiny fraction of the 1975 movement to the Texas ports, interchange costs were understated at Houston, Beaumont, and Texas City and overstated at Corpus Christi, and terminal costs at Houston were understated. On cross examination they developed that there is no relationship between respondent's costs and the supplement 76 rates. Thus the cost study shows that though the costs are almost identical from Buffalo and Blackwell to Galveston and Houston, the Buffalo rate is 73 cents and the Blackwell rate is 64 cents.